Is Ethereum Fusaka upgrade underperforming? Institutions warn that short-term activity cannot hide long-term difficulties

2026-01-22 14:28:14

Abstract generation in progress

[ChainNews] The Fusaka upgrade completed by Ethereum in December last year indeed brought a wave of activity to the network. By increasing block data capacity to reduce Gas fees, this move directly boosted transaction volume and active addresses. Looks good, right?

But here’s the problem. According to institutional analysis, history shows that every Ethereum upgrade follows the same pattern—short-term enthusiasm, long-term cooling-off. This time might be no different.

The pressure has always been there. Layer 2 ecosystems (like Base, Arbitrum) and public chains such as Solana have long been nibbling away at Ethereum’s market share. The speculative frenzy around Meme coins and NFTs has also faded; where has that capital gone? Additionally, major applications like Uniswap are deploying on dedicated chains, dispersing capital.

The result is—fees on the Ethereum mainnet are decreasing, ETH supply is actually increasing, and even TVL (Total Value Locked) is shrinking. What do these data points reflect? Ecosystem vitality is being diverted.

The Fusaka upgrade indeed provided a boost, but how long can this boost last? In the long run, for Ethereum to truly turn the tide, it must face structural challenges—not only technical issues but also a reshuffling of ecological competition.

ETH-1.94%

ARB-5.4%

SOL-1.67%

UNI-2.77%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

4 Likes

Reward
4
4
Repost
Share

Comment

0/400

ChainSauceMaster

· 8h ago

It's the same upgrade cycle again, and I can't help but laugh. When short-term data looks good, they get proud, but in reality, capital has already moved to L2 and Solana. Do they really think lowering gas fees will save anything?

View OriginalReply0

ProtocolRebel

· 8h ago

It's the same old trick again—pump the price during upgrades, then cool off after a couple of months. Fusaka can't change Ethereum's fate either; Layer 2s are taking off, and you're still messing around here?

View OriginalReply0

AirdropF5Bro

· 8h ago

It's the same old routine, upgrade → cheer → cool down, I'm tired of it. Layer 2 has taken so much market share, what's the use of just lowering Gas fees? Applications have already moved on.

View OriginalReply0

BlockchainGriller

· 8h ago

It's the same old trick again—upgrade once and hype it up, but two weeks later, no one cares anymore. Base and Arbitrum have already absorbed enough of Ethereum; now they want to rely on lowering gas fees to save the day? Wake up.

View OriginalReply0